Saudi economy is set to remain resilient, underpinned by strong oil-sector infrastructure and continued economic diversification, said a report. Revenues are projected to rise 1% in 2027 to SAR1.2 trillion ($314 billion), compared with the 2026 estimate, while government spending is likely to fall 3%.
The International Monetary Fund (IMF) has forecast a 1.3 per cent contraction in the economies of the Middle East, North Africa, Afghanistan and Pakistan (MENAP) in 2026, followed by a strong rebound of 6.6 per cent next year, as the regional conflict continues to weigh heavily on energy production, trade and economic activity.
Saudi Arabia’s crude oil production rose to 8 million barrels per day (mbpd) in September 2026, an increase of 12.2% month-on-month, while Brent crude prices settled at $103.5 per barrel at the end of the month, according to Al Rajhi Capital Research.
The contribution of Saudi Arabia's private sector to the gross domestic product (GDP) has doubled in ten years, rising from SAR1.1 trillion ($293.31 billion) in 2016 to about SAR2.3 trillion ($613.28 billion) today, said Minister of Investment Khalid Al-Falih.
Dubai’s economy reached AED473 billion ($129 billion) in the first half of 2026, driven by strong performance across key sectors, including financial and insurance services, healthcare, information and communication, and construction.
The GCC countries have built an investment base of $426 billion across nearly 22,000 factories, contributing 13% of regional GDP in 2025, said a report. About 40% of the industrial investments are concentrated in key sectors such as plastics, refined petroleum products, aluminium and iron and steel.
The Middle East, North Africa and Pakistan are poised for a sharp economic recovery in 2027, with growth projected to reach 6.6 per cent after a war-induced contraction this year, although the International Monetary Fund (IMF) has warned that the rebound will be uneven and depend heavily on the restoration of energy production and trade.
Saudi Arabia's real GDP is expected to contract 3.6% in 2026, largely because of a sharp decline in oil activity, even as the non-oil economy continues to expand, according to the Ministry of Finance's Pre-Budget Statement for 2027.
The UAE tourism sector delivered a robust performance last year, with its contribution to the national GDP rising to 15 per cent, compared to six per cent in 2021, said Abdulla bin Touq Al Marri, Minister of Economy and Tourism.
Dubai’s economy continued its upward trajectory in 2025, delivering strong growth that underscores its resilience and sustained momentum. Its economy expanded for the first nine months to hit AED355 billion, up 4.7% over the previous year, said a report.
